Wilkes v Revenue & Customs (INCOME TAX - high income child benefit (HICB) charge) [2020] UKFTT 256 (TC) (15 June 2020)

Wilkes v Revenue & Customs (INCOME TAX - high income child benefit (HICB) charge) [2020] UKFTT 256 (TC) (15 June 2020)

The HICBC charge is a self-standing liability to income tax and not 'income which ought to have been assessed to income tax' within the meaning of s29(1)(a) TMA 1970; therefore, HMRC had no power to raise discovery assessments under that provision in respect of the HICBC charge where no tax return had been filed and no notice to file had been issued.

Citation
[2020] UKFTT 256
Parties
Appellant: Jason Wilkes; Respondents: The Commissioners for Her Majesty’s Revenue and Customs
Jurisdiction
United Kingdom
Judgment Date
15 June 2020
Procedural Posture
Income Tax Appeal (first Tier Tribunal, Tax Chamber) / Appeal Against Discovery Assessments Under S29 TMA 1970
Outcome
Appeal allowed
Legal Topics
Income Tax, High Income Child Benefit Charge (hicbc), Discovery Assessments, Statutory Interpretation
Tax Law Income Tax High Income Child Benefit Charge (hicbc) Discovery Assessments Statutory Interpretation

Case Brief

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Parties

Jason Wilkes

Appellant

The Commissioners for Her Majesty’s Revenue and Customs

Respondents

Procedural Posture

Income Tax Appeal (first Tier Tribunal, Tax Chamber) / Appeal Against Discovery Assessments Under S29 TMA 1970

Legal Issues

  1. 1 Whether HMRC validly raised discovery assessments under s29(1)(a) TMA 1970 in respect of HICBC liability where the taxpayer had not filed a tax return and had not been issued a notice to file
  2. 2 Whether the HICBC charge is 'income which ought to have been assessed to income tax' within the meaning of s29(1)(a) TMA 1970

Ratio Decidendi

The HICBC charge is a self-standing liability to income tax and not 'income which ought to have been assessed to income tax' within the meaning of s29(1)(a) TMA 1970; therefore, HMRC had no power to raise discovery assessments under that provision in respect of the HICBC charge where no tax return had been filed and no notice to file had been issued.

Court Disposition

Appeal allowed

Orders

  • The assessments are reduced to nil.